The South Dakota Retailers Association (SDRA) is reacting to oral arguments made yesterday at the South Dakota Supreme Court in the case State of South Dakota v. Wayfair, Overstock, Newegg. The case stems from a state law passed in 2016 that would require sellers without a physical presence in the state to collect and remit sales tax if they transact more than $100,000 of business in the state or more than 200 sales.
SDRA Executive Director Shawn Lyons said yesterday’s arguments take the industry one step closer to revisiting the 1992 U.S. Supreme Court Quill decision which prohibits South Dakota from requiring out-of-state retailers to collect and remit the state sales tax.
Lyons says that the U.S. Supreme Court’s Quill decision has given out of state, online-only retailers a significant tax advantage over local businesses in South Dakota for more than twenty years.